Are You Ready for This Year's New 403(B) Regulations?
Nonprofit World › Vol. 27 Nbr. 4, July 2009
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Summary
Since Jan 1, 2009, not-for-profit organizations that provide 403(b) plans covered by the Employee Retirement Income Security Act of 1974 (typically plans offered by educational, health care, and charitable nonprofit institutions) have to be as diligent and methodical in their recordkeeping as 401(k) plan sponsors have been. The new regulations require 403(b) plan sponsors to adopt a written plan document and file a Form 5500 Annual Report/Return. Plan sponsors also are obligated to report indirect as well as direct compensation paid to service providers. The Form 5500 Annual Report/Return and the audited statement don't have to be filed with the Department of Labor until Jul 31, 2010, but the work needs to begin in 2009. Here's how to start: 1. Adopt a written plan document. 2. Get your financial records in order. 3. Determine if an audit is needed. 4. Establish proper internal controls.
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Extract
Are You Ready for This Year's New 403(B) Regulations?
For years, 403(b) retirement plan sponsors led a charmed life, exempted from the detailed paperwork and rigid Department of Labor regulations of 401 (k) plans. But those days are over. Since January 1, 2009, notfor-profit organizations that provide 403(b) plans covered by the Employee Retirement Income Security Act of 1974 (typically pl...
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